The State Council issued a guideline on Tuesday demanding local authorities formulate a three-year plan to accelerate renovation of run-down areas and dilapidated rural houses.
It called for more policy and financing support in this area.
The State Council asked authorities to mobilize both government and private capital for the work.
China plans to build 18 million apartments in urban areas and renovate 10.6 million rural houses between 2015 and 2017, as part of efforts to improve living conditions and boost investment and consumption amid the economic slowdown.
Earlier data from the Ministry of Housing and Urban-Rural Development showed the central government has allocated 185.9 billion yuan (30.5 billion U.S. dollars) to the renovation projects so far this year.
It pumped in 450.6 billion yuan between the start of 2008 and the end of 2014.
Weighed by unsteady global demand, stuttering domestic investment and a weak property sector, China's economic growth fell in the first quarter to 7 percent, its lowest level in six years.
And a string of economic indicators so far suggest growth is yet to meaningfully pick up despite government support including four interest rate cuts since November.
